Trump Administration Pauses Pharmaceutical Tariffs to Negotiate Industry Agreements

President Trump announced a pause on new 100% tariffs for imported branded or patented pharmaceutical products starting October 1, 2025, to allow for negotiations with the pharmaceutical industry and to finalize regulatory documentation1 3 4.

The tariffs had initially been slated to take effect on October 1, 2025, targeting branded and patented pharmaceuticals imported into the United States, but companies actively building domestic manufacturing facilities were to be exempt1 2 6.

The move follows executive orders directing U.S. agencies to prioritize domestic drug production and streamline regulatory processes for U.S.-based manufacturing1.

Uncertainties remain regarding the exact criteria for tariff exemptions, including what qualifies as sufficient investment in U.S.-based manufacturing and whether exemptions will apply to active pharmaceutical ingredients (APIs)2.

Generic drugs and components such as APIs currently remain subject to an ongoing Section 232 national security investigation, with the potential for additional tariffs in the future2.

The tariff pause coincides with broader negotiations between the Trump administration and the pharmaceutical industry on drug pricing and infrastructure spending3.

A separate Most-Favored-Nation (MFN) drug pricing initiative is under development, aiming to align certain U.S. drug prices with those in peer OECD countries; this initiative adds further pressure on the pharmaceutical sector2.